You\u2019ve seen them \u2013 the ads online that tell you that you can make a passive income just by investing a gerbil and an eyebrow hair! You\u2019ll make thousands each month, guaranteed, with this simple plan!<\/p>\n
Just stop. They\u2019re not true. There\u2019s no such thing as a passive income that you can generate without putting in a little work. We\u2019re not here to sell you anything, we\u2019re here to help. That\u2019s why, in this guide, we\u2019ll teach you:<\/p>\n
You can<\/em> generate a passive income, but it\u2019s going to take some work. Thankfully, you have us. Here\u2019s what you need to know about passive income, what it really is and how you can earn it.<\/p>\n What is passive income? Well, it\u2019s income that continues to stream into your checking account every week, month or quarter \u2026 and you don\u2019t even have to think about it.<\/p>\n Now, you\u2019ll see the ads online. \u201cYou can earn $6,000 each month in passive income when you\u2026\u201d<\/p>\n No. You can\u2019t.<\/p>\n But you can create a product or a service that will allow you to collect money each month. That\u2019s what having a passive income is all about \u2013 putting in a bit of initial work and some work on maintenance, then not really having to work so hard in the future but collecting money anyhow.<\/p>\n This guide will teach you how to do that, but you may be wondering why? <\/em>What\u2019s so great about having a passive income? Well, that\u2019s easy. It\u2019s money you\u2019re earning without having to even think about it. Now, sometimes your \u201cpassive\u201d income will require a bit of upkeep. We\u2019ll talk about some of those examples in this guide. For instance, renting out property is going to take a bit of work on your part.<\/p>\n But for the most part, a passive income requires very little input from you. You can collect royalties, invest money and more, and simply watch money come in to your bank account.<\/p>\n The amount of money you passively earn will definitely depend on what you plan to do to create passive income. Obviously, you\u2019re going to earn more when you rent out property than you\u2019ll earn with an interest-bearing bank account.<\/p>\n The amount of passive income you earn is also going to depend on how much work you put into it. That may sound counterintuitive, but it\u2019s true. For instance, if you write a book then never market it, you may earn a few bucks each month. If you spend time marketing what you\u2019ve written, you\u2019ll earn much more, maybe a few hundred each month \u2013 or more!<\/p>\n There are very few passive income strategies that are truly hands-off. Even owning a fast food franchise and having others run the business will require work on your part. There\u2019s licensing, landlords or mortgages and more to deal with.<\/p>\n But as you go through this guide, determine how much work you can realistically put into your new income-generating strategy, then figure out whether the money you\u2019ll earn is worth it to you.<\/p>\n Alright! Are you ready to explore some of the most popular and best ways to generate passive income? Let\u2019s get started!<\/p>\n Initial cost: $$$<\/p>\n Initial work required: Varies<\/p>\n Ongoing work required: Moderate<\/p>\n Money earned: $$<\/p>\n Risk: High<\/p>\n There are two ways you can invest in real estate to earn a passive income. The first is to flip houses. You\u2019ve probably seen it done on television \u2013 your favorite TV personalities will buy a house for a lower than usual price, then will spend money fixing it up. Sometimes a lot of work is required, and other times there\u2019s not much to be done at all.<\/p>\n They\u2019ll then list the house on the market to sell for higher than the original price of the house and the cost of the repairs. In the end, if they\u2019re lucky, they\u2019ll walk away with a nice little profit.<\/p>\n The thing they don\u2019t show you on television is that this can be really risky. You can invest a lot of money in a house, whether it be the purchase price or the repairs, and then it never sells. Fortunately, there\u2019s a way to get around it \u2013 the second way to earn a passive income is to rent out your properties.<\/p>\n The rental market is absolutely huge. For instance, in the United States, the apartment rental market alone is over $174 billion<\/em> dollars. That\u2019s billion with a B. You can get in on the action by renting out the houses you buy.<\/p>\n When you\u2019re a landlord, you\u2019ll run into some problems sometimes. Things break, people need to be evicted, and properties get trashed. Be sure you\u2019re ready to deal with these things should you decide to be a landlord.<\/p>\n Initial cost: $<\/p>\n Initial work required: Very little<\/p>\n Ongoing work required: Moderate<\/p>\n Money earned: $<\/p>\n Risk: Moderate<\/p>\n If you don\u2019t have the resources or the desire to invest in real estate, you can still provide someone a place to live while you earn a passive income \u2013 just rent out a room in your home! Whether you live in a one bedroom apartment or a two story home, you\u2019ve probably got a way to rent out space to someone who needs it.<\/p>\n If your home is small \u2013 one bedroom or so \u2013 you may need to find another place to live. You can go crash with a friend or with family and pay either nothing or a minimal amount in rent. Then, you can charge a tenant to live in the space you\u2019ve bought or rented.<\/p>\n If you have a bigger space and extra room to share, you can rent your room to someone who will essentially become a roommate to you. It\u2019s best if you do a criminal background check and a credit check on whomever you\u2019re renting to \u2013 the fewer surprises the better!<\/p>\n Initial cost: $<\/p>\n Initial work required: Some<\/p>\n Ongoing work required: Very little<\/p>\n Money earned: $$<\/p>\n Risk: Low<\/p>\n If you own your home, you can consider renting out your garage to someone. There could be a number of reasons someone might want a garage. They may want to:<\/p>\n You get the idea \u2013 your garage can create a passive income for you for all sorts of reasons! If you\u2019re comfortable giving someone access to your garage, you can simply list it for rent and watch the money come in each month or week.<\/p>\n As with your roommates, be sure you do a criminal check on these people you\u2019re renting to. After all, you don\u2019t want to be liable for any illegal or unsavory stuff that\u2019s happening on your property.<\/p>\n Initial cost: $$$<\/p>\n Initial work required: Lots<\/p>\n Ongoing work required: Moderate<\/p>\n Money earned: $$$<\/p>\n Risk: High<\/p>\n If you own your own home, you can earn a somewhat passive income by renting out your home. Now, we say \u201csomewhat\u201d because there\u2019s a lot that goes into maintaining a rental property. It\u2019s similar to if you were renting out a room, but there may actually be even more involved.<\/p>\n As a landlord, you\u2019ll be responsible if things break. That includes things that are the tenant\u2019s fault, like windows and walls. You\u2019re also going to be the one they call when the water heater stops heating water, the dishwasher stops washing dishes and the refrigerator stops refrigerating.<\/p>\n As a landlord, natural disasters also suddenly become your fault. The power is out for a week due to ice storms and the pipes freeze and burst. That\u2019s on you. The freezer thaws, causing water damage to the floors. Also on you. A tree falls through the roof. You get it \u2013 it\u2019s up to you to fix it. If you can\u2019t, you\u2019re in charge for putting your tenants up in another rental or hotel until you can.<\/p>\n Do your research before you sign up for this type of passive income, as it may become more expensive than you think. If you\u2019re game for it, it\u2019s actually quite an interesting opportunity.<\/p>\n Initial cost: $<\/p>\n Initial work required: Little<\/p>\n Ongoing work required: Very little<\/p>\n Money earned: $<\/p>\n Risk: Moderate<\/p>\n Do you have a car you\u2019re not using? Whether you\u2019ve switched to public transportation or just have a second vehicle that\u2019s just sitting there, you can earn a passive income when you rent your car for others to drive.<\/p>\n Of course, there are going to be insurance issues you\u2019ll need to take care of. You\u2019ll need to have<\/em> insurance, of course. You\u2019ll also need to check if there are any riders you need to buy to add to your existing plan, and you\u2019ll need to ensure your renters have insurance, too!<\/p>\n Keep your car clean and in good condition. Then, list your car for rent on one of the many websites that are used for this purpose. Or, simply use word of mouth and advertise to locals that you\u2019re renting your vehicle.<\/p>\n As far as rates, they\u2019re up to you! You can charge by the day or by the mile. You should also decide (and put into a contract) what you want to do with fuel for the car. Either you can provide them with a full tank and expect a full tank in return, or you can allow them to drive the car and return it with just however much is left in the tank.<\/p>\n Initial cost: None<\/p>\n Initial work required: Little<\/p>\n Ongoing work required: Very little<\/p>\n Money earned: $-$$<\/p>\n Risk: None<\/p>\n Did you know that people will pay you to advertise with your car? While you have to be actively<\/em> driving, this form of passive income is actually one of the most legit out there. If you have a newer model car that\u2019s in good shape, do a Google search for \u201ccar wrap.\u201d You\u2019ll see what we mean, and you can get started right away!<\/p>\n Now, there are a few requirements for advertising with your car. These may include:<\/p>\n If you can say \u201cyes\u201d to all of these things, you can definitely advertise with your car! You\u2019ll have what\u2019s called a car wrap installed, which usually just takes a few hours. Then, you\u2019ll get paid for just making your daily commute! You may also be eligible to be paid to park in certain places \u2013 sometimes upwards of $30 per hour.<\/p>\n This is truly a passive income; it requires very little effort on your part and you can earn a few hundred each month. That said, campaigns aren\u2019t ongoing, so you may experience a few \u201cdry\u201d months. In other words, don\u2019t count on a steady income.<\/p>\n Initial cost: $<\/p>\n Initial work required: Very little<\/p>\n Ongoing work required: Some<\/p>\n Money earned: $$-$$$<\/p>\n Risk: Low<\/p>\n Do you own a large plot of land? If so, there\u2019s a good chance you\u2019re not using all of it. If that\u2019s the case, why not earn a passive income by renting out a portion of your plot to either campers, RV travelers or tiny house owners?<\/p>\n This way of earning passive income requires very minimal work on your part. You\u2019ll have to make sure your plot is maintained, of course. You\u2019ll also have to make sure that if tiny houses are legal in your area the plot is up to code. Other than that, you can meet some super interesting people, earn a passive income and you probably won\u2019t even notice you have tenants.<\/p>\n Tiny house owners, campers and others are very clean people. They are usually very committed to making each place they visit even cleaner than when they arrived, so you don\u2019t have to worry too much about people wreaking havoc on your land.<\/p>\n You will, however, need to set down some rules. Do you disallow people from hunting or fishing on your land? Would you prefer they not have an open fire on your property? Are there visitor or noise restrictions you\u2019d like observed? Put it all in writing and have your \u201ctenants\u201d sign.<\/p>\n Initial cost: $-$$$<\/p>\n Initial work required: Little<\/p>\n Ongoing work required: Very little<\/p>\n Money earned: $-$$$<\/p>\n Risk: Low to High<\/p>\n We don\u2019t claim to be financial advisers. We never have and we never will. But we do know a thing or two about making money work for you, and investing is one of the only ways you can truly \u201cset it and forget it\u201d when it comes to earning a passive income.<\/p>\n Our advice to you is to hire a financial adviser who\u2019s licensed in your area. He or she can walk you through the steps you need to take to make your investment earn, whether you\u2019re looking for a long term or a short term investment opportunity.<\/p>\n Depending on where you live, you can be eligible to invest in a number of things. Choose from stocks, bonds and more, and choose your risk level. You can invest as little as you want or as much as you can afford, and watch your money grow.<\/p>\n Remember that investing isn\u2019t guaranteed to earn you a passive income. You can gain a ton of money or you can lose it all. That\u2019s why we recommend you speak with a professional who can help you manage your risk in a way that suits your budget and your lifestyle.<\/p>\n Initial cost: $<\/p>\n Initial work required: None<\/p>\n Ongoing work required: None<\/p>\n Money earned: $<\/p>\n Risk: Low<\/p>\n If you want a no-frills way to earn a passive income, you\u2019ve got one \u2013 just open a high interest savings account. It\u2019s really that easy. You can deposit any amount into your savings account, then watch your income grown, month by month and year by year.<\/p>\n The interest you earn on your savings account won\u2019t be enough to fund your retirement. In fact, it may not even be enough to pay the electric bill. But you\u2019ll earn some<\/em> money when you take this step, and depending upon how much you deposit, you can make a few hundred each year on your savings.<\/p>\n Research banks in your area, then choose one that you feel meets your needs. Look for local branches, internet access and more \u2013 whatever suits your needs the best. Then, start saving! Begin with an initial deposit, then commit to investing a certain amount each month. Then, just sit back and watch your savings account grow.<\/p>\n Initial cost: $<\/p>\n Initial work required: Little<\/p>\n Ongoing work required: Minimal<\/p>\n Money earned: $$<\/p>\n Risk: Moderate<\/p>\n If you have some extra cash you\u2019re willing to lend to a peer, you can earn a passive income with peer to peer lending. You can get started on some networks for as little as $25,<\/p>\n So how does peer to peer lending work? Well, you simply loan your money to another person. This person could be looking to start a business or simply to pay off some bills. There is a credit check involved, so you can have a good idea of how likely the person is to pay you back.<\/p>\n You\u2019ll \u201cmeet\u201d your recipient through an online platform. Usually the money is held in escrow with a third party, and payments are processed online. There\u2019s usually risk involved (as with lending to anyone) but the payments themselves are secure transactions.<\/p>\n With that in mind, you can make crazy money with peer to peer lending. Interest rates range from 7 to 39%, depending on the area you live in. If your debtor pays you back (a big if in some cases) you\u2019ll make a lot of money with peer to peer lending.<\/p>\n Initial cost: $-$$$<\/p>\n Initial work required: A lot<\/p>\n Ongoing work required: Moderate<\/p>\n Money earned: $$-$$$<\/p>\n Risk: Moderate<\/p>\n If you start selling custom-made jackets on the internet, there\u2019s going to come a point where you just can\u2019t keep up with demand. But when you create a scalable<\/em> business online, you can definitely earn a passive income with very little effort.<\/p>\n So what does scalable mean? It means that you can continue selling your product to more and more people with very minimal work on your part. So, for instance, and online course would be scalable. You can create it once, then many people can take it. On the other hand, custom jewelry is not scalable \u2013 you\u2019ll be creating a product with every new order that comes in.<\/p>\n Think about some things you can do that are scalable, like writing an ebook and selling it, or creating creating software or apps that people can either buy or purchase in-app purchases. These are scalable and will create a passive income that\u2019s pretty hands-off for you, once you\u2019ve created the product.<\/p>\n Initial cost: $<\/p>\n Initial work required: Some<\/p>\n Ongoing work required: Moderate<\/p>\n Money earned: $$<\/p>\n Risk: Low<\/p>\n If you\u2019re interested in creating a presence online, you can earn a passive income with affiliate marketing. You\u2019re going to need to put in some ongoing work for this, but after a while the amount of work does begin to taper off a bit.<\/p>\n So what\u2019s affiliate marketing? Well, you\u2019re basically earning a commission for selling someone else\u2019s stuff. The key to affiliate marketing is getting a large amount of traffic to your website. Then, as visitors come and either click through ads or buy products from, say, Amazon, you\u2019ll earn money without even doing anything.<\/p>\n But you have to be good at search engine optimization, or at least be willing to learn as you go. It\u2019s not terribly difficult \u2013 there are some hard and fast rules to SEO \u2013 but it does take some knowledge and practice.<\/p>\n Once your website is up, running and popular, you may also be able to monetize your site by offering companies a space on your site to advertise. This is going to take a little work on your part, but you can actually make a healthy chunk of change when you do it.<\/p>\n Initial cost: $<\/p>\n Initial work required: Minimal<\/p>\n Ongoing work required: Moderate<\/p>\n Money earned: $$-$$$<\/p>\n Risk: Low<\/p>\n Have you ever wondered why some people are so excited about posting videos on YouTube? It\u2019s because they get paid, that\u2019s why! YouTubers can make money from ad revenue, affiliate links, sponsorships and by selling merchandise, so there are a few ways you can earn. Ready to give it a shot?<\/p>\n First, you\u2019ll create a channel on YouTube. Then, it\u2019s up to you to come up with some killer content. You can do anything from unboxing videos to instructional clips \u2013 just use your imagination. Then, start sharing your video. With luck, you\u2019ll have a video that goes viral and gain tons of followers.<\/p>\n YouTube is super competitive, as everyone wants to make a passive income. You\u2019ll need at least 1,000 followers (at time of writing) and a certain number of hours of watch time within the past 12 months. Currently that number is 4,000 hours.<\/p>\n As you can see, that\u2019s a lot of work, making YouTube one of the most labor-intensive methods of earning a passive income. But if you\u2019ve got a lot to say and don\u2019t mind putting in the work, creating these videos could be a good option for you.<\/p>\n Initial cost: $$<\/p>\n Initial work required: Some<\/p>\n Ongoing work required: Moderate<\/p>\n Money earned: $$-$$$<\/p>\n Risk: Low<\/p>\n Do you want to open your own store without owning any inventory? Dropshipping is a type of passive income that allows you to do just that. You\u2019ll set up your website in the way you want, name it what you choose, and select products you\u2019d like to sell. Then, you\u2019re off to earning income without ever touching a shipping label!<\/p>\n Dropshipping can take as little or as much work as you like. Some dropshippers say they work upwards of 60 hours each week, while others work just a few hours a day. You\u2019ll need to choose your platform, select your supplier and set up your store. Then you\u2019ll have to actively market yourself \u2013 social media is a great way to do this.<\/p>\n Once you\u2019ve got a good customer base and the orders start coming in you\u2019ll have to keep tabs on your \u201cinventory\u201d \u2013 the products your supplier is and isn\u2019t selling. You\u2019ll have some accounting to do, too, to keep that in mind!<\/p>\n If you set up your store well and market yourself, you can start making money right away. First timers say they made between $200 and $3,000 their first month. Others have actually lost money. Make sure you do your research before you spend your money setting up your business.<\/p>\n Initial cost: $-$$$<\/p>\n Initial work required: Moderate<\/p>\n Ongoing work required: Minimal<\/p>\n Money earned: $-$$$<\/p>\n Risk: Low<\/p>\n The last way you can earn a passive income is to collect royalties on things you\u2019ve created. This is actually quite simple. If you have:<\/p>\n \u2026 you can collect royalties. You can charge people to play your song, share images of your art, use your photos on their website or copy excerpts from your book.<\/p>\n There are some simple ways to do this. For instance, you can simply self-publish a book on Kindle, or sell your images to a stock photo website. Patents and performance royalties are a little trickier, and it may be a good idea to talk to a lawyer about how to collect them.<\/p>\n In short, if there\u2019s something you\u2019ve created you can probably earn a passive income from it. The initial work is usually pretty intense, but then you\u2019ll literally sit back and watch your bank account grow.<\/p>\n After reading this guide, you\u2019re probably thinking there\u2019s really no such thing as a true passive income \u2013 and you\u2019d be kind of right! All income takes a bit of work, at least to start up, and usually passive income does require some ongoing effort on your part.<\/p>\n However, what we love about passive income is that it\u2019s relatively easy in most cases, and you can do what you love to do! Whether you love to create YouTube videos or take photos, you can create income in a way that makes you happy!<\/p>\n","protected":false},"excerpt":{"rendered":" You\u2019ve seen them \u2013 the ads online that tell you that you can make a passive income just by investing a gerbil and an eyebrow hair! You\u2019ll make thousands each month, guaranteed, with this simple plan! Just stop. They\u2019re not true. There\u2019s no such thing as a passive income that you can generate without putting in a little work. We\u2019re not here to sell you anything, we\u2019re here to help. That\u2019s why, in this guide, we\u2019ll teach you: How to create a passive income that will pay a few of your bills each month How to determine which passive deals <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_cloudinary_featured_overwrite":false,"footnotes":""},"categories":[30,1],"tags":[],"class_list":["post-523","post","type-post","status-publish","format-standard","hentry","category-make-money","category-uncategorized"],"yoast_head":"\nPassive Income: What it Is and Why You Want It<\/h2>\n
How Much Money Can You Earn?<\/h2>\n
1. Invest in real estate<\/h2>\n
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2. Rent out your room<\/h2>\n
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3. Rent out your garage<\/h2>\n
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4. Rent out your house<\/h2>\n
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5. Rent out your car<\/h2>\n
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6. Use your car as a billboard<\/h2>\n
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7. Rent out your land<\/h2>\n
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8. Investing \u2013 the best and almost only one real passive income<\/h2>\n
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9. Open a high-interest savings account<\/h2>\n
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10. Lend money with peer to peer financing<\/h2>\n
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11. Create a scalable online business<\/h2>\n
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12. Get into affiliate marketing<\/h2>\n
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13. \u00a0Create YouTube videos<\/h2>\n
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14. Try your hand at dropshipping<\/h2>\n
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15. \u00a0Collect royalties on items you create<\/h2>\n
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Conclusion<\/h2>\n